Business entities in Latvia in 2023

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Healy Consultants assists our Clients to setup the optimal corporate structure for their business needs. There are several business entities in Latvia, the most common being the LLC. Foreign companies can also setup a JSC, a Branch office or a Representative office.

Limited Liability Company (SIA)

  • This is the most common business entity in Latvia. A Latvian LLC must appoint at least 1 shareholder and 1 director, who can be of any nationality. The minimum share capital required to set up a LLC is €2,800 with at least 50% deposited at registration;
  • Companies must be audited if they fall under two of the following three criteria i) over €800,000 in annual turnover ii) €400,000 in assets iii) average of 25 employees during the year;
  • There is a special type of LLC called the micro enterprise, which is an LLC with i) all individual shareholders ii) annual turnover less than €100,000 iii) less than 5 employees and iv) salary of each employee less than €720 per month. The minimum share capital required to set up a micro enterprise is €1.
  • Our Clients who wish to setup a holding company in Latvia, register an LLC. They then use this LLC as the corporate shareholder for subsidiaries around the world.

Joint Stock Company (AS)

  • This Latvian business setup can be incorporated with 1 shareholder and 1 director who can be of any nationality. However, if the company is publically listed, 3 directors will be appointed. The minimum share capital required for a JSC is €35,000;
  • JSCs can be setup either privately or via public subscription by listing on the stock exchange. There is only one stock exchange in Latvia, namely the NASDAQ OMX Riga, which has only 32 corporations listed. Our Clients may alternatively list their JSC in other stock exchanges in the EU.

The Branch office

  • The scope of operations of a branch office will be defined by the parent company. Additionally, the parent company will be accountable for all the liabilities of its branch;
  • A branch office is liable to the same reporting, tax and audit requirements as a resident company.

The Representative office

  • This Latvian business setup is not allowed to engage in commercial or productive activities. This entity can engage only in i) promoting the business of the parent company and ii) conducting market research;
  • A representative office is not required to have statutory audits.

Table of Comparison between Latvia entities

LLCJSCBranch officeRep Office
How long to set the company up?4 weeks5 weeks5 weeks4 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
Legal Liability?LimitedLimitedUnlimitedUnlimited
Wholly Foreign owned?YesYesYesYes
Minimum paid-up share capital?€2,800€35,000€0€0
% of the share capital paid up before registration50%100%00
File annual tax return?YesYesYesNo
Tax Registration Certificate required?YesYesYesNo
Corporate Bank Account?Norvik BankSwedbankSEB BankABLV Bank
Does our Client need to travel?NoNoNoNo
Resident director required?NoNoNoNo
Resident shareholder required?NoNoNoNo
Minimum directors allowed?1111
Minimum shareholders?1111
Latvian resident company secretary required?NoNoNoNo
Corporate shareholders allowed?YesYesYesYes
Corporate director(s) allowed?YesYesYesYes
Public register of shareholders and directors?YesYesYesYes
Latvia Corporate Tax Rate?20%20%20%0%
Annual financial statements required?YesYesYesNo
Statutory audit required?YesYesYesNo
Allowed to issue sales invoices?YesYesYesNo
Allowed to sign contracts?YesYesYesNo
Allowed to import and export goods?YesYesYesNo
Can rent an office in Latvia?YesYesYesYes
Can buy Latvian property?YesYesYesNo
Can own equity in other Latvian companies?YesYesYesNo
Total Latvia business setup costs in Yr. 1€8,990€10,500€9,580€8,730
Subsequent annual costs (incl. accounting and tax fee)€3,580€5,070€5,020€5,020
Sample Engagement fee InvoiceView invoice PDFView invoice PDFView invoice PDFView invoice PDF

Contact us

For additional information on our business setup services in Latvia, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Sales & Business Development Manager
  • Contact me!
latvia Cabinet of Ministers latvian MInistry of Finance latvian Chamber of Commerce (LLCI) Central Statistical Bureau of Latvia Investment and development agency of Latvia latvia company register